MTA BUSWAY ON THE WAY WITH $317 MILLION LOAN.

Byline: Lisa Mascaro Staff Writer

The California Transportation Commission on Thursday approved an unprecedented $317 million loan plan that lets $1.5 billion in Los Angeles County projects - including the San Fernando Valley East-West Busway - go forward now despite state budget cuts.

Fresh from the commission's 7-0 vote at its meeting in Sacramento, MTA chief Roger Snoble stepped off the plane at Burbank Airport and signed the contracts needed to proceed with construction of the Valley's long-awaited busway and the purchase of 200 buses.

Construction of the Metropolitan Transportation Authority busway across the Valley could start within a month.

``I just didn't want to wait a minute longer than we needed to,'' Snoble said.

Los Angeles County Supervisor Zev Yaroslavsky, who also traveled to Sacramento, called it a ``great day for the Los Angeles County transportation network.''

``It's very important for the San Fernando Valley - the east-west (busway) has been long in the making,'' said Yaroslavsky, an MTA board member.

The MTA's financing plan, hailed as a model for agencies statewide, allows the agency to borrow the $317 million it had been promised by the state, which is facing a $35 billion shortfall. Over the next six years, the state will repay the MTA with a combination of cash and in-kind transportation projects.

Commissioner Allen M. Lawrence of Canoga Park called it ``truly good government at its best.''

The MTA expects to pay $15 million to $25 million in interest on the loan, but says it would make up that cost by being able to award the lowest bid for the $329 million busway - a bid that was set to expire at the end of May.

Yaroslavsky noted that the agency is taking a risk because the state can postpone completion of the in-kind projects, but said the alternative was worse.

``A bigger risk would be to do nothing,'' he said. ``Not to do it risks a far greater transportation calamity.''

The proposal relied on a nearly decade-old state law authored by then- Valley Assemblyman Richard Katz that allows local agencies to finance projects but which has never been used to the extent the MTA sought, officials said.

The MTA further honed its proposal in the final days, ultimately winning approval for a repayment plan that will provide $175 million in cash and $141.8 million of in-kind projects through fiscal year 2008-09. In-kind projects could include improvements to the Ventura-San Diego freeways interchange.

In addition to providing $98 million for the Valley busway, the CTC's approval will provide $191 million for the Eastside light-rail line, which would have lost out on nearly $500 million in federal funds without the state allocation, and $27 million toward the buses.

Snoble said work on the Valley busway can begin almost immediately, now that the loan is in place. The busway - a 14-mile route from North Hollywood to Warner Center and now named the Metro Rapid Transitway - is expected to be running by 2005.

But the Valley group that unsuccessfully sued the MTA in December in Los Angeles Superior Court, saying the busway's environmental report is inadequate, criticized the agency's plans.

``If the MTA wants to go ahead and award a contract with our appeal pending, then that's to their detriment,'' said Diana Lipari, chairwoman of Citizens Organized for Smart Transit.

``They're taking a chance, because we think we have a very good case and that we will prevail in the court of appeal,'' she said. ``Why don't they take the money and put it in the proper bus transit in the Valley?''

Supervisor Gloria Molina, another MTA board member, accompanied Snoble and Yaroslavsky to Sacramento.

Los Angeles Deputy Mayor Brian Williams also made the trip and presented a City Council resolution unanimously supporting the MTA plan. Councilman-elect Antonio Villaraigosa was also on hand to support the MTA, as were local legislators and a community member, officials said.

However, the Bus Riders Union, which has long battled the MTA to abandon its rail projects in favor of putting more buses on the street, opposed the MTA's plan.

As part of the approval Thursday, $15.4 million was granted upfront, outside of the borrowing plan, for Gold Line train cars.

CAPTION(S):

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Photo:

Clockwise, from left, MTA officials Dennis S. Mori, David Yale and Michael Turner look on with Los Angeles County Supervisor Zev Yaroslavsky as MTA chief Roger Snoble, seated, center, signs paperwork that clears the way for the Valley's east-west busway.

Gene Blevins/Special to the Daily News